2021 Real Estate Forecast & Negotiation Tips
East Bay real estate is HOT! What to expect going forward and tips to improve your negotiation skills.
While no one can predict what the real estate market is going to do with 100% accuracy, we can watch trends and make educated guesses as to what the future might look like. Remember predictions are just that, do not let it dictate your buying or selling needs… only your own situation, both personal and financial, should control your plans to buy or sell.
2021 Real Estate Forecast:
The East Bay real estate market is continuing to explode! Mortgage rates remain steady in the mid 3% range (still low but not as low as they were mid pandemic), jobs are recovering, and the demand for housing is continuing to grow. There is only so much supply available, with many sellers still on the fence about where to go once they sell and building supplies at a shortage and premium cost. The housing market looks like it will remain strong for the rest of 2021 and beyond. While the number of new homes on the market in Contra Costa County is up 13% compared to this time last year, sales prices are also 20% higher and as a result, homes are only staying on the market an average of 10 days compared to 29 days in 2020. Increased demand is affecting both supply and prices.
Three Tips to Improve Your Negotiation Skills:
The ability to negotiate successfully in today's turbulent real estate climate can make the difference between home ownership and failure.
Start with a plan and do your homework: Plan accordingly and be informed on the current market you are searching, get disclosures as soon as you can (if available), and review before writing an offer. Knowing recent neighborhood sales, how many offers they received, and how far over asking the home sold for will help set you up for success and enable you to write a more competitive offer.
Listen and compromise: Listen to your agent and to the sellers. If the sellers want a rent back, offer them a 30-day free rent back in your offer or be willing to compromise on time frames. Listen to your agent, no one knows better about what is happening in the current market better than they do. Agents write offers for multiple buyers and review offers on their own listings, they do this every day. Do not get upset if your agent says you’re going to need to go at least “X” above asking to be competitive and you do not listen so your offer gets rejected. Additionally, in a competitive market, it is hard for buyers to get everything on their wish list. Decide beforehand what your must haves are and what you’re willing to compromise on.
Expect challenges and be willing to walk away: Real estate transactions are fast and with far less time to negotiate a contract than ever before. Buyers and agents only have one opportunity to present the best offer and have fewer opportunities for solutions or compromises. Expect to get shot down or counter offered and even a shortened timeframe to schedule and perform inspections. You do not want to get bullied into buying a home you have to settle for, so know when it’s time to walk away.